Saudi King Calls for Aid for Egypt

Saudi King Abdullah called for an international effort to raise funds for Egypt after his ally, former army chief Abdel-Fattah el-Sisi, won presidential elections there last week.

Abdullah said friends of Egypt should hold an aid conference to pledge financial support, according to the official Saudi Press Agency, a call backed by his Gulf neighbor, the United Arab Emirates. The king also urged el-Sisi to engage in a national dialogue with those of his opponents who have not engaged violence.

Saudi Arabia has led efforts among oil-rich Gulf nations to bolster Egypt’s economy since the military under el-Sisi seized power last year, ousting elected Islamist leader Mohammed Morsi and starting a bloody crackdown on his supporters. Morsi’s Muslim Brotherhood is anathema to many of the Gulf’s absolute monarchies because it seeks to bring political Islam to power.

Since the army takeover, Saudi Arabia, the UAE. and Kuwait have pledged a total of $15 billion in aid, helping to prop up foreign-exchange reserves and limit declines in the Egyptian currency. Even with that backing, Egypt’s $280 billion economy is still growing at the slowest pace in two decades, as tourists and investors stay away amid political unrest.

The UA. expressed support for Abdullah’s proposed aid conference, the official WAM news agency reported, citing the crown prince of Abu Dhabi, Sheikh Mohammed Bin Zayed Al Nayhan. The UAE’s foreign minister said last week that its search for partners to support Egypt includes the International Monetary Fund and the World Bank.

Egypt has repeatedly engaged in loan talks with the IMF since the uprising against Hosni Mubarak in 2011, without ever concluding a deal.